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HomeMy WebLinkAboutMINUTES-03/04/1986-Regular' March 4, 1986 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Regular Meeting - 6:30 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, March 4, 1986, at 6:30 p.m. in the Council Chambers in the City of Fort Collins City Hall. Roll call was answered by the following Councilmembers: April, Estrada, Horak, Knezovich, Ohlson, and Stoner. Absent: Councilmember Rutstein. Staff Members Present: Shannon, Huisjen, Krajicek, Lewis Agenda Review: City Manager Interim City Manager Shannon noted staff would like the record to reflect that Item #24, Denial of Resolution Supporting Passage of House Bill 1267 Regarding the Purchase of Phantom Canyon for Use as a State Park was tabled indefinitely on the Consent Calendar, not denied. Consent Calendar This Calendar is intended to allow the City Council to spend its time and energy on the important items on a lengthy agenda. Staff recommends approval of the Consent Calendar. Anyone may request an item on this calendar be "pulled" off the Consent Calendar and considered separately. Agenda items pulled from the Consent Calendar will be considered separately under Agenda Items #27 and #37, Pulled Consent Items, except items pulled by anyone in the audience or items that any member of the audience is present to discuss that were pulled be staff or Council. These items will be discussed immediately following the Consent Calendar. E)A d! This ordinance was unanimously- adopted on First Reading on February 18. The improvements in the District were accepted at the January 7, 1986 ' meeting of the City Council. Notice of the assessment has been published and mailed to the affected property owners. -240- March 4, 1986 11 7. Q The District is located on Lemay Avenue from Harmony Road South to the ' entrance of the SouthRidge Greens Public Golf Course. Improvements included the acquisition, construction, and installation of street, water line, sanitary sewer line and storm drainage improvements in the District. This ordinance was unanimously adopted on First Reading on February 18. The improvements in the District were accepted at the January 7, 1986 meeting of the City Council. Notice of the assessment has been published and mailed to the affected property owners. At the January 21, 1986 Council meeting, an Ordinance authorizing the issuance of $1,300,000 in Special Assessment Bonds for the Heart Special Improvement District No. 84 was adopted. This ordinance was unanimously adopted on First Reading on February 18. This revision requires all utilities to be placed underground except under four specific conditions when utilities may be left or installed aboveground. The existing ordinance is less specific and more open to interpretation. This ordinance was unanimously adopted on First Reading on February 18. On February 4, Council approved the first and second Resolutions pertaining to the formation of the Harmony Trunk Sanitary Sewer District No. 60. The petitioner is now asking Council for formal creation of the district. A. Hearing and First Reading of Ordinance No. 30, 1986, Annexing Approximately 13.24 Acres Known as the Hahn Annexation. B. Hearing and First Reading of Ordinance No. 31, 1986, Zoning I Approximately 13.24 Acres, Known as the Hahn 'Annexation, into the T-Transitional Zone. -241- March 4, 1986 ' The applicant, John McGinn, c/o Engineering Professionals, Inc., on behalf of property owner J. Robert Hahn, is requesting annexation of an "L" shaped piece of property approximately 13.24 acres in size, located approximately 3/4 of a mile south of Harmony Road and west of Shields Street. The strange shape of this annexation is intended to provide the necessary contiguity to 570 acres of property, known as the Seven Springs/Hahn Annexation, which has also petitioned for annexation. This is a 100% voluntary annexation. 10. The requested zoning is T-Transitional. A. Hearing and First Reading of Ordinance No. 32, 1986, Annexing Approximately 570 Acres Known as the Seven Springs/Hahn Annexation. B. Hearing and First Reading of Ordinance No. 33, 1986, Zoning Approximately 570 Acres of Property, Known as the Seven Springs/Hahn Annexation into the T-Transitional Zone. The applicant, John McGinn, c/o Engineering Professionals, Inc., on behalf of property owners J. Robert Hahn and the Letourneau Foundation of Rockwall, Texas, is requesting annexation of approximately 570.31 acres. Approximately 243.24 acres of this annexation is located approximately 3/4 of a mile south of Harmony Road, between Shields Street on the east and Taft Hill Road on the east. The remaining 320.46 acres is located south of Harmony Road (extended) and west of Taft Hill Road. This is a 100% voluntary annexation. The requested zoning is T-Transitional. 11. Hearinq and First Readino of Ordinance Nn. 27. 1QA6. Varntinn tho The amended Master plan for Cunningham Corner P.U.D. was approved by Council on July 2, 1985. That Master plan required the vacation of Windmill Drive in Woodwest 7th Filing to allow the construction of townhomes in Cunningham Corners. The Planning and Zoning Board had denied the amended Master plan because they agreed with staff that the connection of Windmill to Horsetooth was needed to provide better access to Woodwest for emergency vehicles and better circulation from a traffic engineering and planning standpoint—, overturned the decision of Planning and Zoning Board and approved the plan deleting the extension of Windmill. This is the request to vacate the right-of-way for the stub of the street while still retaining utility and access easements. -242- March 4, 1986 12. 13. 14. The applicant for the vacation of Windmill Drive is the developer of ' Cunningham Corners P.U.D., Metcalf Ltd. with Mr. Tom Sibbald representing the developer. The owners are requesting the vacation of the alley behind Lots 8, 9, 10, and 11 and Lots 19, 20, 21, and 22 of the Frey Subdivision. This alley is unused at this time and overgrown with trees. There are no utilities currently using this alley nor are any planned for the future. Al property owners have indicated in writing their request for vacation and their acceptance and maintenance of the property after formal vacation by the City. All utilities have been contacted and have indicated no problems with the vacation. Sewer Service fees for non-residential customers are based on monthly water consumption. Some customers who have high water consumption in the summer due to lawn watering are charged correspondingly high sewer service fees. This ordinance would allow sewer service fees for those customers to be based on their winter quarter water consumption. The County Elections Division has made minor changes to some County precinct boundaries in the City limits of Fort Collins as the result of a ruling that precinct boundaries must follow visible lines such as streets, irrigation ditches, or bicycle paths. This ordinance approves 1986 precincts as established in the District -Precinct Map dated March 18, 1986, which is being sent to Council under separate cover. The map does not change Council District boundaries, which were established six months prior to the March 5, 1985 District election. 15. Hearing and First Reading of Ordinance No 37 1986 Assessing the Cost of Improvements for Fairbrooke Special Improvement District #79 The improvements in the District were accepted at the January 21, 1986 meeting of the City Council. Notice of the assessment has been published and mailed to affected property owners. I 243- March 4, 1986 ' 16. Resolution Establishing Rental Rates for Surplus Water for the 1986 season. This resolution would establish rates for the rental of the City's surplus water. Rental rates are set annually by City Council after review and recommendation by the Water Board. 17. Resolution Authorizing Amendment to Anheuser-Busch Process Waste Line Easement. Early in 1985 the City granted an easement to Anheuser-Busch across Riverbend Pond lands to enable A-B to construct a 16-inch process waste line from the brewery to Wastewater Treatment Plant No. 2. The alignment is adjacent and parallel to an existing Boxelder sanitary sewer. During final design of the line it was found that minor changes in alignment would both benefit the construction and lessen the site disturbance. EFL This resolution approves a contract with the Union Pacific Railroad for crossing improvements on East Prospect Road. These improvements will include warning lights, gates, and right-of-way and a rubberized crossing surface. The total cost of the improvements is $169,056. Of that total, $60,700 will be paid from the Timberline and Prospect Intersection Project, and the remaining $108,356 will be paid as part of a federal aid project for railroad crossing safety improvements. This work is being done as part of the Timberline and Prospect Intersection Reconstruction Project. 19. Resolution Accenting the Final Rpnort of the Fnrt rniiinc TncL, Cn ro The Task Force on Women's Issues was appointed for one year to investigate issues of concern to women in Fort Collins. During 1985, the members of the Task Force held three community meetings, gathered data about women in the community, and spoke with a number of individuals about women's issues. The Task Force then compiled a report of its findings for the City Council along with 95 recommendations for action. This resolution formally ack'riowledges that the City Council accepts the final report from the Task%Force on Women's Issues. W I This resolution would authorize the Mayor to enter into an agreement with six other entities who are participants in the Windy Gap Project. The agreement would revise an agreement dated February 24, 1969 which -244- March 4, 1986 originally set up the committee known as the Six City Water Committee. ' Because of changing interests in the Windy Gap Project, the group believes it is desirable to enter into a new agreement that defines the membership, purpose, and workings of the committee. In addition to the parties to the agreement (Boulder, Estes Park, Fort Collins, Greeley, Longmont, and Platte River Power Authority), all new allottees of the Windy Gap Project and former allottees who remain in the Subdistrict may be members. The primary purpose of the committee is to monitor and advise the Municipal Subdistrict of the Northern Colorado Water Conservancy District regarding all matters concerning the Windy Gap Project: 21. Resolution Making Appointments to the Public Access Advisory Board Two vacancies currently exist on the Public Access Advisory Board due to the resignations of Bear Jack Gebhardt and Jim Welch. The Council liaison has reviewed the applications on file. In keeping with Council's policy, recommendations for these appointments were announced on February 18. The appointments were tabled to March 4 to allow additional time for public input. Prospective appointees are as follows: Public Access Advisory Board - Sue Ballou John McCoy 22. Resolution Granting a Tamnnrnry and Dormanont ctnrm rn-,;n,,.,, n+;i;+.. 23. Raintree Associates, developers of Raintree P.U.D. and sellers of the property of Raintree Commercial P.U.D. where the shopping center is being built at the corner of Drake and Shields, have revised their storm drainage plans for Raintree P.U.D. and as a result an easement is required to install and maintain a storm drainage pipe through Ross Open Space which is adjacent to Rolland Moore Park. The Storm drainage plans for Raintree P.U.D. (the residential P.U.D.) are closely tied to the shopping center plans and the easement is needed now for the shopping center and later for the residential area when it develops. Parks and Recreation have agreed to the design and the cost of the easement, which will be $2150. The temporary easement will last for two, months, long enough to complete construction, then the area will be' regraded and reseeded to restore it to its current condition. Trail% In order to complete the Foothills Trail, the City must cross State ' land which is utilized by Colorado State University. The State Board -245- March 4, 1986 ' of Agriculture is willing to grant the City an easement to construct, operate, maintain and use a public recreation trail. 24. 25. Resolution 86-29 regarding Phantom Canyon was tabled to March 4 from the meeting of February 18. Because House Bill 1267 is no longer under consideration by the State Legislature, staff recommends that the resolution be tabled indefinitely. On December 3, after an initial vote of denial (4-3) and at the request of Councilmember Knezovich who wanted to clarify his vote, Council voted 4-3 to reconsider the Stuart UGA Amendment. Upon reconsideration, Council voted 6-1 to table the item to the regular meeting of December 17th, at which time it was tabled to February 18 at the request of staff and with the concurrence of the applicant. The applicant then requested the item be further tabled to March 4. Staff requests that the item be tabled to April 1 to allow time for further staff work. The applicant, Kimbel J. Stuart, is requesting an amendment to the Fort Collins Urban Growth Area boundary to include approximately 80 acres located south of Horsetooth Road (extended) and west of Taft Hill Road. This area was part of the larger Foothills Area UGA boundary amendment request reviewed and denied by the City Council on November 5, 1985. The resolution for approval of this request includes the 1.5 units per acre density limitation condition suggested by the City Council at their October 8, 1985, work session. 26. Routine Deeds and Easements. a. Easement dedication from Clifton 0. and Kareen A. Davison for access across Replat of Tract A of Eastgate First Filing. b. Dedication of Rights -of -Way and Easements for Heart SID #84. Ordinances on Second Reading were read by title by Wanda Krajicek, City Clerk. Item #5. Item #6. -246- March 4, 1986 Item #7. Underground. Item #8. Ordinances on First Reading were read by title by Wanda Krajicek, City Clerk. Item #9. A. 0 Item #10. A. OM Item #11. Item #12. Item #13. Item #14. Item #15. Councilmember Stoner made a motion, seconded by Councilmember Estrada, to adopt and approve all items not removed from the Consent Calendar. Yeas: Councilmembers April, Estrada, Horak, Knezovich, Ohlson, and Stoner. Nays: None. THE MOTION CARRIED. -247- March 4, 1986 n Ordinance Appropriating $132,800 in Investment Earnings from Prior Year Reserves in the Downtown Development Fund for Purchase of Property located at 185 North College Known as Small Wonder. Adopted on Second Reading Following is the staff's memorandum on this item: "This ordinance was adopted by a 5-1 vote on First Reading on February 18. The DDA Board of Directors voted 8-0 (with one member absent) in favor of appropriating $132,800 for purchase of the property located at 185 North College." Councilmember Knezovich made a motion, seconded by Councilmember Estrada, to adopt Ordinance No. 29, 1986 on Second Reading. Yeas: Councilmembers April, Estrada, Knezovich, Ohlson, and Stoner. Nays: Councilmember Horak,. THE MOTION CARRIED. Resolution Making Appointment to the Storm Drainage Board Adopted Following is the staff's memorandum on this item: "A vacancy currently exists on the Storm Drainage Board due to the resignation of Constantine Papadakis.. The Council liaison has considered the applications of the two alternate members and the applications on file. The following are being recommended as prospective appointees: Storm Drainage Board - Wallace Foster, regular Brian Richter, alternate In keeping with Council's policy, this Resolution will be tabled until March 18 for public input." Councilmember Stoner made a motion, seconded by Councilmember Knezovich, to adopt Resolution 86-45 inserting the names of Wallace Foster as the regular member and Brian Richter as the alternate member. Councilmember Knezovich made a motion, 'seconded by Councilmember Stoner, to table Resolution 86-45 to March 18 for,public input. Yeas: Councilmembers April, Estrada, Horak, Knezovich, Ohlson,' and Stoner. Nays: None. THE MOTION CARRIED. -248- March 4, 1986 Resolution Authorizing the City Manager ' to Enter into a Professional Services Agreement with EDAW, Inc. for the Final Design of Troutman Park, Adopted Following is the staff's memorandum on this item: "Executive Summary Parks and Recreation has budgeted for the final design and subsequent construction of Troutman Park. Staff has selected EDAW, Inc. to provide final design and construction specifications for the project. The Professional Services Agreement with EDAW is in excess of $20,000 and therefore requires Council approval. Background The City has a policy of providing one neighborhood park of six -to -thirty acres in every residentially developed square mile of the city. To this end, the City began acquiring what is known as Troutman Park in 1979. The City now owns 15.5 acres and has an agreement with Poudre R-1 School District to utilize an additional two -to -three acres of the adjacent 1986 school grounds. A portion of the park site serves as a regional detention pond. $40,000 has been budgeted in the Parkland Fund for preliminary and final ' design and $425,000 for construction. In January, a Request for Proposal was issued with a Scope of Work to complete final design. The scope includes preparing preliminary and final plans for construction and providing support services through pre -construction and construction phases. The consultant must coordinate with various City departments and Poudre R-1. The final design must accommodate the needs of the neighborhood and provide a level of service similar to that of other neighborhood parks in the City. In addition, the consultant is required to provide an analysis of available water resources and determine whether raw or treated water irrigation systems would be most economically and practically feasible. Following the City's Capital Project Management Control System, 14 proposals were rated and the top four 'firms were interviewed. EDAW, Inc. was selected as the highest rated firm. The proposals were rated on adequacy of proposal, qualifications, interest in the job, availability, and cost. EDAW's proposal highlighted some assets important to this particular project. They indicated a creative approach to the unique design challenges of this project including: - maintaining the integrity of the detention pond - heavy involvement of the neighborhood to encourage a feeling of pride of ownership - energy and water conservation measures - the use of raw vs. treated water for irrigation - providing facilities that are accessible to the handicapped ' - providing low maintenance, durable facilities -249- March 4, 1986 working with Poudre R-1 to provide joint use activities with the elementary school by school opening this fall EDAW is well qualified for the project. Their local office has designed over 30 parks. A very similar project to Troutman Park was completed last year for which EDAW won a national award. Final design is estimated to take 12 weeks. Once the bid documents are prepared, a contractor will be hired. Construction is scheduled to take four months. Under the Professional Services Agreement, EDAW will be paid $33,500 in installments based upon completion of certain tasks. The fee includes EDAW's subcontract with Architecture Plus to provide architectural design services for the restroom and shelter. The Capital Project Management Control System requires Council approval of a Professional Services Agreement of this magnitude." Councilmember Knezovich asked the record to show he did not participate in the discussion or vote on this item. Councilmember Estrada made a motion, seconded by Councilmember Stoner, to adopt Resolution 86-46. ' Jim Creeden, 1911 South Shields 103, asked an outside consultant rather than in-house why this work was staff. being done by Interim City Manager Shannon replied that it was more cost effective to hire park design specialists on a limited basis rather than keeping those specialists on staff year round. The vote on Councilmember Estrada's motion to adopt Resolution 86-46 was as follows: Yeas: Councilmembers April, Horak,. Knezovich, Ohlson, and Stoner. Nays: None. (Councilmember Knezovich withdrawn.) THE MOTION CARRIED. City Manager's Report Interim City Manager Shannon reported on the street sweepers and paint stripers that are being repaired and noted the Trolley Society would be relocating trees on the West Mountain median the next two weekends. Councilmembers' Reports Councilmember Knezovich reported on H.B. 1131 dealing'with the ability of the City to annex new areas and serve them with the municipal utility and ' buy out existing REA service areas. He noted the bill was amended to be favorable to both REA and the City. -250- March 4, 1986 Councilmember Horak reported on his trip to Washington to testify before , the Senate on the wild and scenic bill and noted letters would be sent to the Senate to encourage the bill be moved through committee. Councilmember Estrada reported on meetings with Poudre R-1 to come to some agreement on the contract for the pool next to the Lincoln Center and also to negotiate an agreement for the new pool/rink complex. Citizen Participation A. Proclamation Naming March 9-15 as Girl Scout Week was accepted by Casey Thompson of the Mountain Prairie Girl Scout Council. B. Proclamation Naming March 2-9 as Volunteers of America Week was forwarded to the appropriate persons. Mark Korb, 1223 West Mountain, appeared to update Council on the trolley situation and to advise Council of the concerns of the residents. He stated it was their feeling the Society could not meet their contract obligations and would not meet the deadline. Michael Reeves, 1931 Sandalwood Lane, spoke on skateboarding in Fort Collins and stated he felt there was confusion on enforcement by the Police Department. I Michele Creeden, 1917 South Shields #03, asked for a public apology from Councilmember Ed Stoner. Jim Creeden, 1917 South Shields #03, read a statement relating to the investigation results and alleged misconduct on the part of Rich Shannon, Bruce Glasscock, Howard Reed, and Chuck Cross. Randy Ross, Chairman of the Human Relations Commission, offered to work with Mr. Creeden on this problem through the Human Relations Commission. David Hartley, 409 North Sherwood, objected to Governor Lamm allowing the deployment of the Colorado National Guard to Honduras this spring. He presented copies of a letter from the American Friends Service Organization and asked for a Proclamation or Resolution requesting Governor Lamm not send the National Guard to Central America for training exercises. Public Hearing on Proposed Hazardous Materials Transportation Ordinance Following is the staff's memorandum on this item: "Council has scheduled this public hearing to receive public comments on the proposed Hazardous Materials Transportation Ordinance, which is I scheduled for Council consideration on First Reading on March"'18. -251- March 4, 1986 ' The ordinance would reduce the possibility of a hazardous materials incident occurring in the City by limiting the transportation of hazardous materials by motor vehicles to persons making pickups and/or deliveries within the City. There are also provisions for the safe operation of vehicles once they have entered the City." The following persons spoke at the public hearing: 1. James Sumner, consultant to the transportation industry, representing Miller Truck Lines, opposed the ordinance as written because of the financial burden it would place on truckers. 2. Jim Greuel, 3501 South Stover, supported the ordinance and outlined its benefits, noting it would reduce the risk of a disastrous accident. 3. Loren Maxey, 1101 Clark, Chairman of the Chamber of Commerce Task Force on Hazardous Materials, read a position paper from the Task Force stating a state proposal would be preferable but that they would support the local ordinance if no state legislation is adopted. 4. Barbara Allison, 1212 Lynnwood Drive, opposed the ordinance and added such matters should be left to state and federal authorities. ' 5. Dr. Larry Johnston, Director of Environmental Health, Larimer County Health Department, supported the ordinance. 6. Donn McMorris, Chairman of the Board of Northwest Transport Service of Commerce City, estimated rerouting would cost his company $216,500 annually. 1. Kathy Winder, 1430 West Oak, President of the League of Women Voters, read a statement in support of the local ordinance. 8. Don Coleman, President of Colorado Motor Carriers Association, stated the ordinance is premature and suggested waiting for the state legislature to enact a law. 9. Nelson Lilly, regional manager of Yellow Freight System, estimated the ordinance would have a $41,000 per month impact on his firm. 10. Florence Phillips, Senior Policy Analyst/Attorney for Governor Lamm, presented a letter from Governor Lamm supporting passage of the local ordinance. 11. Jay Lauer, managing directorof Colorado Construction, opposed the ordinance. 12. R.J. Hicks, Deputy Chief of the Colorado Port of Entry, felt Fort ' Collins should wait for a state law but if it is defeated, a local ordinance would be in order. -252- C March 4, 1986 13. Tim Johnson, 2939 Brookwood Place, representing Poudre Canyon Sierra ' Club, supported the ordinance and suggested Fort Collins take the lead on the issue. 14. Joe Stern, 1221 LaPorte Avenue, supported the local ordinance. 15. Andy Kiefer, 418 North Whitcomb, supported the local ordinance. 16. Liza Dailey, 416 South Grant, supported the local ordinance. 17. Steve Henry, 3124 Appaloosa Court, supported the local ordinance. 18. Kathy Jones, business owner at 127 South College, supported the local ordinance. 19. Carl Maxey, CSU student and truck driver, opposed the ordinance and encouraged construction of a bypass so that trucks could continue to use Highway 287. Mayor Ohlson noted all the comments and suggestions would be considered before the ordinance is scheduled for formal consideration. Councilmember Horak requested staff compile additional information about possible financial impacts of the ordinance on truckers, legal ramifications of a local law, and city costs to enforce the proposal. ' Resolutions Authorizing the Mayor to Enter into an Intergovernmental Agreement between the City and the Fort Collins -Loveland Airport Authority Crediting $34,870 as a Repayment toward the Line -of -Credit, Extending the Expiration Date of the Line -of -Credit, and Forgiving Back Lease Payments Following is the staff's memorandum on this item: "Executive Summary A. Resolution Crediting the Airport Authority Line -of -Credit and Converting the Remainder of the Line -of -Credit to a Non -Interest Bearing Loan. B. Resolution' Authorizing Forgiveness of Certain Lease Payments from the Authority and Credit of Certain Contributions for Lease Payments for 1986. -253- March 4, 1986 Background Resolution 86-47 The first Resolution would provide for the credit of $34,870 toward repayment of draws against the $50,000 Line -of -Credit established for the Fort Collins -Loveland Airport Authority in April of 1984, and extend the repayment of the remainder of the Line -of -Credit ($8,326) to December 31, 1988. $25,000 - Ft. Collins 25 000 - Loveland $50,000 - Line -of -Credit FORGIVE LOAN $17,435 $4,163 $17,435 $4,163 $34,870 $8,326 On April 3, 1984, the City Council passed Resolution 84-68, authorizing the establishment of a $50,000 Line -of -Credit for the Fort Collins -Loveland Airport Authority to provide operating expenditure Authority for 1983, 1984, and 1985. The Line -of -Credit by the Authority on or before September 30, 1985. To has been unable to make any repayments. Through July o drawn against the Line -of -Credit. On December 30 we reci request for $10,000. The Airport Authority requests cr of $34,870 from the City against the amount to be rep Authority on the Line -of -Credit. The basis of the rE amounts were expended for capital equipment or repai property. The items purchased are as follows: $19,000 - Hangar Repairs 9,090 - Weather Equipment 6,780 - Heaters for Hangars assistance to the was to be retired late, the Authority 1985, $33,196 was ?ived an additional edit in the amount aid by the Airport quest is that the ,s to the Cities' Staff recommends that the $34,870 of capital expenditures be credited anc that the the $8,326 drawn from the Line -of -Credit be converted into a non -interest bearing loan to be repaid no later than December 31, 1988. Our $17,435 will come from the money budgeted for the runway expansion. The current information is that the expansion will be delayed another year. In the future, capital requests will be considered on a case -by -case basis. Resolution 86-48 The second Resolution would forgive the 1984 and 1985 lease obligations of the Airport Authority. The lease payments.were established to provide for the City's debt service on the $2'000,000 Sales & Use Tax Revenue Bond Issue. The Airport Authority has not been able to meet these payments out of its own revenues without contribution from,the cities. The Airport Authority has not been able to generate sufficient net income to pay their lease payments for 1984 and 1985, and it is not felt that they will be able to generate sufficient net income during the period of the current lease that expires on December 31, 1988, to pay the lease payments. The lease payments in the amount of $137,890 due on April 1 and October 1 -254- March 4, 1986 of each year were to provide for the City's debt service on the $2,000,000 ' Sales and Use Tax Revenue Bond Issue. In the absence of the lease payments from the Authority, both Cities have been contributing 50% toward the debt service requirements on the bonds. We recommend that to the extent the Airport Authority is able to make lease payments that they do so and if they are not able to make the annual payments, the Cities continue making the debt service payments on the bonds. Notification from the Airport Authority to the City Manager that the Authority is unable to make all or part of the lease payments would be all that is required to cause the City to make a transfer to the Authority as a contribution which in turn will be returned along with Loveland's contribution to the City so the required debt service payment may be satisfied. Council's approval of the annual appropriations ordinance, including Fort Collins share of the debt payment, would constitute the annual review of this subject by Council. Although the Cities have paid the bond payments, the lease payment is still viewed as a liability on the Airport Authority books. As a result of this liability it has been difficult to secure Public Officials liability insurance. We recommend that the City forgive back lease payments in order for the liability to be cleared from the Authority's books and advance budgeted monies for 1986 operations and lease payments." Councilmember Estrada made a motion, seconded by Councilmember Stoner, to adopt Resolution 86-47. Airport Authority Chairman Joe Phillips spoke of the problems with I insurance coverage for Authority members. Carol Caldwell, Airport Manager, addressed the reasons the line of credit repayment obligation had not been met. She stated the revenue generated had been going back into the airport for improvements, maintenance and upkeep of the airport. Ken Bonetti, 722 West Mountain, commented on the subsidy situation at the airport. He suggested no action be taken and that every effort be made to sell the airport. Bruce Lockhart, 2500 East Harmony Road ;',asked if'Valley Airpark was having the same insurance problems as the Fort' Coll ins -Loveland Airport. Jim Woodward, 430 Garfield, concurred with Mr. Bonetti's comments and suggested the Airport Authority be disbanded, the debt paid off, and the airport sold. Councilmember Horak noted he would not support the Resolution and suggested the Economic Development Task Force look at the issue. Joe Phillips noted if the Resolution was not approved, all six Airport Authority members would submit their resignations. He gave background on , the airport management since 1982. -255- March 4, 1986 Councilmember Estrada felt not passing the action in a worse fiscal situation. He favored efforts agreed the Economic Development Task Force should impact the airport has on economic development. s suggested might result to sell the airport and study and determine what The vote on Councilmember Estrada's motion to adopt Resolution 86-47 was as follows: Yeas: Councilmembers April, Estrada, Knezovich, Ohlson, and Stoner. Nays: Councilmember Horak. THE MOTION CARRIED. Councilmember Stoner made a motion, seconded by Councilmember Estrada, to adopt Resolution 86-48. Yeas: Councilmembers April, Estrada, Horak, Knezovich, Ohlson, and Stoner. Nays: None. THE MOTION CARRIED. Councilmember Stoner adjourn the meeting Knezovich, Ohlson, an Adjournment d made a motion, seconded by Yeas: Councilmembers Stoner. Nays: None. The meeting adjourned at 10:40 p.m. ATTEST: �1a�a.AOI � . City Clerk Mayor Councilmember Estrada, to April, Estrada, Horak, -256-